The gap between consumption and domestic supply would be 0% except for Barack Obama's war on "Big OIl": ANWR, moratorium on offshore drilling in gulf post BP, blockage of keystone pipeline. We could finally achieve world peace and end terrorism and middle eastern conflict.

I very much agree with the notion that oil prices can be an incredibly destructive force in economic developments. However, the positive trend lines seen in the article are something that has appeared before - when production in Alaska started or when offshore-drilling in the golf of Mexico started are the 2 examples that spring to mind. In neither cases it turned out to be true.

Furthermore I think that a price of 145 $ per barrel in the year 2035 is more than just optimistic. Looking at rising demand from China, India, Indonesia and many other countries, and pitting against that the potential for added production that exists in the world, I would assume that such a price is only possible in case of severe declines of consumption in the western world. Baring an incredible techonological breakthrough the only way I can see that coming is an enormous decrease in living standards across the board.

IMHO it is more likely that the price of oil will go much higher than that in the 2 decades in between, possibly even 4 digit territory (nominal), and cause a lot more pain on its way there.

Oil consumption per head in the US has fallen by more than half since 1978.

It's no wonder that - for the majority of Americans - living standards have fallen.

The multiplier of median wage for buying a house, buying a car, driving 200 miles or attending college are all higher than at any time since the late 1960s (and some have never been higher).

New technology does mitigate this a little - ipods and xboxes provide distraction. But it is harder than ever in living memory for ordinary Americans to leave their parents' homes, get married, drive a car or put food on the table.

Shale gas is a godsend. For when the gas ends, we need to build capacity for new nuclear: thorium (http://energyfromthorium.com/ ), breeder reactors and eventually fusion. Divert some more of the military budget for essential civilian energy research (and pilot plants) - cheap energy and better lives depend on it.